133.06
Net indebtedness of school district - certain securities not considered in calculation.

(A)[Effective until 9/15/2014]A school district shall not incur,
without a vote of the electors, net indebtedness that exceeds an amount equal
to one-tenth of one per cent of its tax valuation, except as provided in
divisions (G) and (H) of this section and in division (C) of section 3313.372
of the Revised Code, or as prescribed in section 3318.052 or 3318.44 of the
Revised Code, or as provided in division (J) of this section.

(A)[Effective 9/15/2014]A school district shall not incur, without a
vote of the electors, net indebtedness that exceeds an amount equal to
one-tenth of one per cent of its tax valuation, except as provided in divisions
(G) and (H) of this section and in division (D) of section
3313.372 of the Revised Code, or as prescribed in section 3318.052 or 3318.44
of the Revised Code, or as provided in division (J) of this section.

(B)
Except as provided in divisions (E), (F), and (I) of this section, a school
district shall not incur net indebtedness that exceeds an amount equal to nine
per cent of its tax valuation.

(C)
A
school district shall not submit to a vote of the electors the question of the
issuance of securities in an amount that will make the district's net
indebtedness after the issuance of the securities exceed an amount equal to
four per cent of its tax valuation, unless the superintendent of public
instruction, acting under policies adopted by the state board of education, and
the tax commissioner, acting under written policies of the commissioner,
consent to the submission. A request for the consents shall be made at least
one hundred twenty days prior to the election at which the question is to be
submitted.

The superintendent of
public instruction shall certify to the district the superintendent's and the
tax commissioner's decisions within thirty days after receipt of the request
for consents.

If the electors do not
approve the issuance of securities at the election for which the superintendent
of public instruction and tax commissioner consented to the submission of the
question, the school district may submit the same question to the electors on
the date that the next special election may be held under section 3501.01 of
the Revised Code without submitting a new request for consent. If the school
district seeks to submit the same question at any other subsequent election,
the district shall first submit a new request for consent in accordance with
this division.

(D)
In
calculating the net indebtedness of a school district, none of the following
shall be considered:

(1)
Securities
issued to acquire school buses and other equipment used in transporting pupils
or issued pursuant to division (D) of section 133.10 of the Revised
Code;

(2)
Securities
issued under division (F) of this section, under section 133.301 of the Revised
Code, and, to the extent in excess of the limitation stated in division (B) of
this section, under division (E) of this section;

(3)
Indebtedness resulting from the dissolution of a joint vocational school
district under section 3311.217 of the Revised Code, evidenced by outstanding
securities of that joint vocational school district;

(4)
Loans, evidenced by any securities, received under sections 3313.483,
3317.0210, and 3317.0211 of the Revised Code;

(E)
A
school district may become a special needs district as to certain securities as
provided in division (E) of this section.

(1)
A
board of education, by resolution, may declare its school district to be a
special needs district by determining both of the following:

(a)
The
student population is not being adequately serviced by the existing permanent
improvements of the district.

(b)
The
district cannot obtain sufficient funds by the issuance of securities within
the limitation of division (B) of this section to provide additional or
improved needed permanent improvements in time to meet the needs.

(2)
The board of
education shall certify a copy of that resolution to the superintendent of
public instruction with a statistical report showing all of the following:

(a)
The
history of and a projection of the growth of the tax valuation;

(c)
The
estimated cost of permanent improvements proposed to meet such projected
needs.

(3)
The
superintendent of public instruction shall certify the district as an approved
special needs district if the superintendent finds both of the following:

(a)
The
district does not have available sufficient additional funds from state or
federal sources to meet the projected needs.

(b)
The
projection of the potential average growth of tax valuation during the next
five years, according to the information certified to the superintendent and
any other information the superintendent obtains, indicates a likelihood of
potential average growth of tax valuation of the district during the next five
years of an average of not less than one and one-half per cent per year. The
findings and certification of the superintendent shall be conclusive.

(4)
An approved
special needs district may incur net indebtedness by the issuance of securities
in accordance with the provisions of this chapter in an amount that does not
exceed an amount equal to the greater of the following:

(a)
Twelve per cent of the sum of its tax valuation plus an amount that is the
product of multiplying that tax valuation by the percentage by which the tax
valuation has increased over the tax valuation on the first day of the sixtieth
month preceding the month in which its board determines to submit to the
electors the question of issuing the proposed securities;

(b)
Twelve per cent of the sum of its tax valuation plus an amount that is the
product of multiplying that tax valuation by the percentage, determined by the
superintendent of public instruction, by which that tax valuation is projected
to increase during the next ten years.

(F)
A
school district may issue securities for emergency purposes, in a principal
amount that does not exceed an amount equal to three per cent of its tax
valuation, as provided in this division.

(1)
A
board of education, by resolution, may declare an emergency if it determines
both of the following:

(a)
School
buildings or other necessary school facilities in the district have been wholly
or partially destroyed, or condemned by a constituted public authority, or that
such buildings or facilities are partially constructed, or so constructed or
planned as to require additions and improvements to them before the buildings
or facilities are usable for their intended purpose, or that corrections to
permanent improvements are necessary to remove or prevent health or safety
hazards.

(2)
Upon the declaration of an emergency, the board of education may, by
resolution, submit to the electors of the district pursuant to section 133.18
of the Revised Code the question of issuing securities for the purpose of
paying the cost, in excess of any insurance or condemnation proceeds received
by the district, of permanent improvements to respond to the emergency
need.

(3)
The
procedures for the election shall be as provided in section 133.18 of the
Revised Code, except that:

(a)
The form of
the ballot shall describe the emergency existing, refer to this division as the
authority under which the emergency is declared, and state that the amount of
the proposed securities exceeds the limitations prescribed by division (B) of
this section;

(b)
The
resolution required by division (B) of section 133.18 of the Revised Code shall
be certified to the county auditor and the board of elections at least one
hundred days prior to the election;

(c)
The
county auditor shall advise and, not later than ninety-five days before the
election, confirm that advice by certification to, the board of education of
the information required by division (C) of section 133.18 of the Revised
Code;

(d)
The board of
education shall then certify its resolution and the information required by
division (D) of section 133.18 of the Revised Code to the board of elections
not less than ninety days prior to the election.

(4)
Notwithstanding division (B) of section 133.21 of the Revised Code, the first
principal payment of securities issued under this division may be set at any
date not later than sixty months after the earliest possible principal payment
otherwise provided for in that division.

(1)
The
board of education may contract with an architect, professional engineer, or
other person experienced in the design and implementation of energy
conservation measures for an analysis and recommendations pertaining to
installations, modifications of installations, or remodeling that would
significantly reduce energy consumption in buildings owned by the district. The
report shall include estimates of all costs of such installations,
modifications, or remodeling, including costs of design, engineering,
installation, maintenance, repairs, measurement and
verification of energy savings, and debt service, forgone residual value
of materials or equipment replaced by the energy conservation measure, as
defined by the Ohio school facilities commission, a baseline analysis of actual
energy consumption data for the preceding three years with the utility baseline
based on only the actual energy consumption data for the preceding twelve
months, and estimates of the amounts by which energy consumption and resultant
operational and maintenance costs, as defined by the commission, would be
reduced.

If the board finds after
receiving the report that the amount of money the district would spend on such
installations, modifications, or remodeling is not likely to exceed the amount
of money it would save in energy and resultant operational and maintenance
costs over the ensuing fifteen years, the board may submit to the commission a
copy of its findings and a request for approval to incur indebtedness to
finance the making or modification of installations or the remodeling of
buildings for the purpose of significantly reducing energy consumption.

The school facilities
commission, in consultation with the auditor of state, may deny a request under
this division by the board of education any school district is in a state of
fiscal watch pursuant to division (A) of section 3316.03 of the Revised Code,
if it determines that the expenditure of funds is not in the best interest of
the school district.

No district board of
education of a school district that is in a state of fiscal emergency pursuant
to division (B) of section 3316.03 of the Revised Code shall submit a request
without submitting evidence that the installations, modifications, or
remodeling have been approved by the district's financial planning and
supervision commission established under section 3316.05 of the Revised
Code.

No board of education of
a school district that, for three or more consecutive years, has been declared
to be in a state of academic emergency under section 3302.03 of the Revised
Code, as that section existed prior to March 22, 2013, and has failed to meet
adequate yearly progress, or has met any condition set forth in division
(A)(2) or
(3) of section 3302.10 of the
Revised Code shall submit a request without first receiving approval to incur
indebtedness from the district's academic distress commission established under
that section, for so long as such commission continues to be required for the
district.

(2)
The school
facilities commission shall approve the board's request provided that the
following conditions are satisfied:

(a)
The
commission determines that the board's findings are reasonable.

(c)
The
installations, modifications, or remodeling are consistent with any project to
construct or acquire classroom facilities, or to reconstruct or make additions
to existing classroom facilities under sections 3318.01 to 3318.20 or sections
3318.40 to 3318.45 of the Revised Code.

Upon receipt of the
commission's approval, the district may issue securities without a vote of the
electors in a principal amount not to exceed nine-tenths of one per cent of its
tax valuation for the purpose of making such installations, modifications, or
remodeling, but the total net indebtedness of the district without a vote of
the electors incurred under this and all other sections of the Revised Code,
except section 3318.052 of the Revised Code, shall not exceed one per cent of
the district's tax valuation.

(3)
So
long as any securities issued under this division remain outstanding, the board
of education shall monitor the energy consumption and resultant operational and
maintenance costs of buildings in which installations or modifications have
been made or remodeling has been done pursuant to this division
. Except as
provided in division (G)(4) of this section, the board shall maintain and
annually update a report in a form and manner
prescribed by the school facilities commission documenting the reductions
in energy consumption and resultant operational and maintenance cost savings
attributable to such installations, modifications, or remodeling.
The resultant operational and maintenance cost savings shall
be certified by the school district treasurer. The report shall be submitted
annually to the commission.

(4)
If the school facilities commission verifies that the
certified annual reports submitted to the commission by a board of education
under division (G)(3) of this section fulfill the guarantee required under
division (B) of section 3313.372 of the Revised Code for three consecutive
years, the board of education shall no longer be subject to the annual
reporting requirements of division (G)(3) of this section.

(H)
With the
consent of the superintendent of public instruction, a school district may
incur without a vote of the electors net indebtedness that exceeds the amounts
stated in divisions (A) and (G) of this section for the purpose of paying costs
of permanent improvements, if and to the extent that both of the following
conditions are satisfied:

(1)
The fiscal
officer of the school district estimates that receipts of the school district
from payments made under or pursuant to agreements entered into pursuant to
section 725.02, 1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41,
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised Code,
or distributions under division (C) of section 5709.43 of the Revised Code, or
any combination thereof, are, after accounting for any appropriate coverage
requirements, sufficient in time and amount, and are committed by the
proceedings, to pay the debt charges on the securities issued to evidence that
indebtedness and payable from those receipts, and the taxing authority of the
district confirms the fiscal officer's estimate, which confirmation is approved
by the superintendent of public instruction;

(2)
The
fiscal officer of the school district certifies, and the taxing authority of
the district confirms, that the district, at the time of the certification and
confirmation, reasonably expects to have sufficient revenue available for the
purpose of operating such permanent improvements for their intended purpose
upon acquisition or completion thereof, and the superintendent of public
instruction approves the taxing authority's confirmation.

The maximum maturity of
securities issued under division (H) of this section shall be the lesser of
twenty years or the maximum maturity calculated under section 133.20 of the
Revised Code.

(I)
A
school district may incur net indebtedness by the issuance of securities in
accordance with the provisions of this chapter in excess of the limit specified
in division (B) or (C) of this section when necessary to raise the school
district portion of the basic project cost and any additional funds necessary
to participate in a project under Chapter 3318. of the Revised Code, including
the cost of items designated by the
school facilities commission as required locally funded initiatives, the cost
of other locally funded initiatives in an amount that does not exceed fifty per
cent of the district's portion of the basic project cost, and the cost for site
acquisition. The
commission shall notify the superintendent of public instruction whenever a
school district will exceed either limit pursuant to this division.

(J)
A
school district whose portion of the basic project cost of its classroom
facilities project under sections 3318.01 to 3318.20 of the Revised Code is
greater than or equal to one hundred million dollars may incur without a vote
of the electors net indebtedness in an amount up to two per cent of its tax
valuation through the issuance of general obligation securities in order to
generate all or part of the amount of its portion of the basic project cost if
the controlling board has approved the school facilities commission's
conditional approval of the project under section 3318.04 of the Revised Code.
The school district board and the Ohio school facilities commission shall
include the dedication of the proceeds of such securities in the agreement
entered into under section 3318.08 of the Revised Code. No state moneys shall
be released for a project to which this section applies until the proceeds of
any bonds issued under this section that are dedicated for the payment of the
school district portion of the project are first deposited into the school
district's project construction fund.